‘Big Four’ auditors to develop blockchain-based solution to fiscal auditing

19 Jul, 2018
by Richard Allen
News
‘Big Four’ auditors to develop blockchain-based solution to fiscal auditing

Deloitte, Ernst & Young, KPMG and PwC, the world’s four biggest auditing firms, have partnered with 20 Taiwanese banks to spearhead blockchain technology for fiscal audits, local news outlet CTEE reports.

According to CoinTelegraph, the partnership will aim to achieve a blockchain-based solution to streamline for auditing companies’ interim financial reports, specifically focusing on how to improve the so-called ‘external confirmation’ processes. For the time being, this process requires an auditor to manually collect and verify evidence of companies’ transactions with third parties.

In addition to being developed by the consortium of banks with the help of Taiwan’s Financial Information Service Company (FISC), the pilot will harness the immutable structure of blockchain to secure and automate the confirmation process, creating the opportunity to significantly reduce the time it takes for auditors to assess a company’s economic wellbeing.

The banks will lay the role of validators to migrate the companies’ transaction data onto a blockchain which will make it available to all participating audit firms. It’s expected that the new system will reduce confirmation times from two weeks to “within a day.”

It’s expected that by next year the system will be implemented in more than 1400 publicly-listed Chinese companies.

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